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Nicklaus, Inc

Question 12

Multiple Choice

Nicklaus, Inc., currently produces 110,000 units at a cost of $440,000. Next year Nicklaus, Inc., expects to produce 120,000 units. Nicklaus' relevant range is 100,000 to 120,000 units. If the cost is variable and 120,000 units are produced, the cost:


A) will stay the same
B) will decrease
C) will be indeterminate
D) will increase to $480,000

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